The India Electronics and Semiconductor Association (IESA), India’s premier industry association representing the Electronics System Design and Manufacturing (ESDM) and semiconductor ecosystem, has welcomed the Government of India’s new Production Linked Incentive (PLI) Scheme, PLI 2.0 (MPMS).

Approved with an outlay of Rs 625 billion over five years, IESA described the scheme as a timely and strategic intervention that will sustain India’s manufacturing momentum and accelerate its ambition to become a US$400 billion electronics manufacturing economy by fiscal 2030.

The first phase of the PLI scheme has been one of India’s most successful industrial policy initiatives. Since its launch, the scheme’s total incentive outlay has expanded from about Rs 1.9 trillion to nearly Rs 11.5 trillion.

Electronics exports, particularly mobile phone exports, have grown more than eight-fold. Mobile phone manufacturing has increased nearly 28 times, making India the world’s second-largest mobile phone manufacturer and transforming the country from a net importer into a significant smartphone exporter.

The scheme has also attracted investments exceeding Rs 175 billion, generated production of more than Rs 11 trillion, created over 175,000 direct jobs and catalysed a vibrant Electronics Manufacturing Services (EMS) ecosystem.

IESA has been an active partner in this transformation, working closely with the Ministry of Electronics and Information Technology (MeitY), the India Semiconductor Mission (ISM), state governments and industry. Its efforts include providing policy recommendations, facilitating industry dialogue and promoting investments, innovation, talent development and global collaborations to strengthen India’s electronics and semiconductor ecosystem.

Ashok Chandak, President, IESA and SEMI India, said, “The success of the first PLI scheme has fundamentally transformed India’s electronics manufacturing landscape by creating global-scale production capacity, attracting leading multinational companies, generating employment and positioning India as a trusted global manufacturing destination. MPMS comes at the right time to sustain this momentum and move the industry towards its next phase of growth, with an ambition to nearly double cumulative production to about Rs 39 trillion and cumulative exports to about Rs 15 trillion, while creating 60,000 additional direct jobs.”

He futher added, “The next phase of India’s electronics journey must focus on strengthening the domestic value chain. While manufacturing scale has grown significantly, domestic value addition has increased from around 8–10 per cent to nearly 20 per cent. With the combined implementation of the new PLI, the Electronics Components Manufacturing Scheme (ECMS), the Semicon India Programme, the Electronics Manufacturing Clusters (EMC) Scheme and the Rs 1 trillion Research, Development and Innovation (RDI) Scheme, India has the opportunity to increase domestic value addition towards 40 per cent over the coming years. Together, these initiatives will encourage component manufacturing, semiconductor packaging, indigenous product development, advanced manufacturing technologies and design-led innovation, creating a globally competitive and resilient electronics ecosystem.”

IESA said the new PLI scheme will encourage greater investment across the electronics value chain, including consumer electronics, industrial electronics, telecom equipment, automotive electronics, medical electronics, strategic electronics and next-generation products enabled by artificial intelligence, the Internet of Things, Industry 4.0 and edge computing.

Navin Bishnoi, Chairperson, IESA, said, “IESA believes the convergence of these complementary policy initiatives marks the beginning of a new phase for India’s electronics industry. While the SEMICON India Programme is establishing the country’s semiconductor manufacturing capabilities, ECMS will accelerate the localisation of electronic components, EMC will provide world-class manufacturing infrastructure, and the RDI Scheme will strengthen indigenous technology development and product innovation. Together with the new MPMS scheme, these initiatives create a comprehensive roadmap for building an integrated electronics value chain, spanning design and intellectual property creation, components, semiconductors, manufacturing and exports.”

IESA also believes the next phase should focus on creating globally competitive Indian products and technology companies. Alongside manufacturing scale, greater emphasis on design, intellectual property creation, deep-tech start-ups, skilled talent and indigenous innovation will enable India to capture a larger share of the global electronics value chain.

Through policy advocacy, international partnerships, start-up enablement, talent development and industry platforms such as the IESA Vision Summit and SEMICON India, IESA will continue working with government and industry to support this transformation.

India’s electronics demand is expected to grow rapidly over the next decade, driven by AI, digitalisation, electric mobility, industrial automation, telecommunications and smart infrastructure.

IESA believes the renewed policy support will further enhance investor confidence, attract global supply chains, create high-value employment and accelerate India’s emergence as a trusted global hub for electronics design, manufacturing and innovation.

Ashok Chandak, President, IESA and SEMI India, concluded, “India is no longer just a large consumer market for electronics—it is emerging as a global hub for design, manufacturing and innovation. The new PLI scheme, supported by ECMS, the Semiconductor India Programme, EMC and the RDI Scheme, provides the policy continuity needed to realise the vision of Atmanirbhar Bharat. Together, these initiatives will accelerate India’s journey towards a US$400 billion electronics manufacturing economy by 2030, while significantly increasing domestic value addition and strengthening India’s position in global electronics and semiconductor value chains.”